Purchase Option Agreement

Name: Purchase Option Agreement
SKU: 3157
Availability: InStock

$300 $339 IVAI

Preparation of purchase option contracts for properties and all types of assets. Estimated Delivery Time / 1-3 days (depending on the subject matter and complexity of the transaction)

Why is the execution of a Purchase Option Agreement important?

The Purchase Option Agreement is the one that is signed before formalizing the definitive purchase and sale agreement, or the deed of conveyance. This type of agreement allows the parties to define certain basic agreements of the business, such as the price and the form of payment, as well as certain preliminary conditions that each party, or buyer and seller, must fulfill before formalizing the transaction; for example, that a property and its plan are duly registered before the Public Registry, that the property has no liens or debts for municipal taxes, or even, that it has no debts with the administrator, if it is the case that it is in a condominium complex, etc. It is very usual that, in a purchase and sale of a property, a contract of purchase and sale option is signed as a sign of the intention of the seller and the buyer to move forward with the business.

Do you need an Purchase Option Agreement?

A client may require the Purchase Option Agreement service from PredictaBill in Costa Rica when he is interested in acquiring a property, but one of the parties involved in the sale requires certain conditions to be met beforehand; these conditions may include the legal verification of the condition of the property, or even the obtaining of financing. This service gives the client the possibility of securing the option to purchase the property for a certain period of time, during which he can evaluate whether it meets his expectations and conditions. In addition, this contract gives the client the advantage of being able to negotiate the price and conditions of the sale and purchase during the established term, thus avoiding possible changes in the market or loss of opportunity.

Why PredictaBill?

Fast and accurate legal procedures

Streamline legal processes by drafting contracts and documents accurately, saving time and avoiding issues.

Alternative to hourly billing

Fixed rate regardless of product/service

Efficiency in notarial processes

Save time and effort by more efficiently drafting documents for notarial procedures

Essential Documents

Property number and exact address or description of the asset(s) that will be subject to the transaction.

Parties:

Company name
Corporate ID
Address

Representative and personal information:

Name
Civil status
Profession / Occupation
ID / passport
Address and place to serve notifications (physical address or email)

Current use of the property (residence, business, warehouse) or the assets that will be purchased.

Proposed term.

Price.

Down payment (if applicable).

Additional comments related to the negotiation.

Confirm who has to pay the tax stamp.

Acquire Purchase Option Agreement

Terms and conditions

The price indicated here has been estimated assuming that the requested document will be delivered in digital format, or that you will pick up the physical version at the PredictaBill offices. Alternatively, you can request that the document be sent to the location you specify, by courier or Costa Rica postal service, in which case the costs and delivery times that will be indicated at the time of processing the payment for the service will apply

FAQ

1. What is Purchase Option Agreement?

A Purchase Option Agreement is a legal agreement between two parties, in which one of them (the seller) grants the other (the buyer) the exclusive right to purchase an asset within a specified time and at an agreed price, subject to the fulfillment of certain conditions.

2. What is the difference between an Purchase Option Agreement and a Purchase Agreement?

The main difference is that the Purchase Option Agreement is a preliminary agreement, the purpose of which is to reserve the property, whether it is real estate, a vehicle, machinery, or equipment, among others. The buyer and the seller define the basic conditions under which the owner of the property, i.e. the seller, agrees to reserve the property to a company or individual, i.e. the buyer, for a certain time, during which the owner may not sell it to a third party. On the other hand, the Purchase Agreement is the definitive instrument or agreement, by which the transaction is formalized. For example, in the case of a property, the contract of sale is materialized using a public deed.

3. What are the benefits of using a Purchase Option Agreement?

By using a Purchase Option Agreement, the buyer has the opportunity to secure the purchase of an asset at an agreed price, without having to execute the transaction immediately, allowing the buyer to verify or fulfill certain conditions in advance without losing the business opportunity.

4. What happens if the buyer decides not to exercise the purchase option?

The call option must be drafted by an experienced professional, such as the members of the PredictBill team so that the conditions for not exercising a call option without creating a loss for the client are properly identified and delimited. If a call option is not drafted according to the particularities of the business, or if the option is not exercised without justification, the buyer will generally lose the amount of money paid as an advance or premium for the option.

5. Is it necessary to have the advice of an attorney when signing a Purchase Option Agreement?

It is always advisable to have the advice of a lawyer specialized in puchases agreements and real estate law (if the purchase involves a property) when signing a purchase option agreement since its enforceability and possible consequences must be analyzed by an expert who can foresee possible contingencies, making sure to protect the client’s interests.